Former U.S Vice president and Democratic presidential hopeful Joe Biden on Thursday lambasted e-commerce giant Amazon.com Inc’s for paying NOTHING in federal tax bill in 2018 tax year.
Biden said no company making billions in profits should pay a lower tax rate than firefighters and teachers.
“I have nothing against Amazon, but no company pulling in billions of dollars of profits should pay a lower tax rate than firefighters and teachers. We need to reward work, not just wealth.”
Biden’s remarks added to the growing criticisms against Amazon for paying $0 U.S. federal income taxes on more than $11 billion in profits before taxes in 2018.
In line with the former VP’s statement, Vermont Senator Bernie Sanders said Amazon’s paying $0 in federal taxes is a “disgrace.” Bernie Sanders is Democratic presidential hopeful.
Senator Elizabeth Warren of Massachusetts, another Democratic presidential hopeful, said she will tax Amazon’s profits to ensure the largest American corporations do not pay zero corporate income tax.
However, Amazon denied all the allegations, tweeting that it had paid $2.6 billion in corporate taxes since 2016.
“We pay every penny we owe,” Amazon said, adding: “Congress designed tax laws to encourage companies to reinvest in the American economy. We have.”
“Assume VP Biden’s complaint is (with) the tax code, not Amazon,” the company tweeted.
Amazon told Reuters last month that its low tax bill mostly came from stock-based employee compensation, the Republican tax cuts of 2017, carry forward losses from years when the company was not profitable and tax credits for massive investments in R&D.
Amazon said it has invested $200 billion since 2011 and created 300,000 U.S. jobs.